TB MC Qu. 04-89 (Static) Which of the following is an... Which of the following...
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Accounting
TB MC Qu. 04-89 (Static) Which of the following is an...
Which of the following is an advantage of using the plantwide overhead rate method?
Multiple Choice
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It helps distinguish value-added activities from non-value-added activities.
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The necessary information is readily available.
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It emphasizes activities and their costs and arguably better reflects how overhead cost is used in making products.
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Each department has its own overhead rate and its own allocation base.
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It takes into account that when products differ in batch size and complexity, they usually consume different amounts of overhead resources.
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